Lowe's Companies, Inc. (LOW) is a publicly traded company in the Consumer Cyclical — Home Improvement industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Lowe's Companies, Inc., together with its various subsidiary entities, operates as a prominent home improvement retailer serving both the United States and international markets. The company supplies a broad spectrum of items essential for construction, upkeep, renovations, and interior design projects.
Is Lowe's Companies, Inc. stock overvalued or undervalued in 2026?
Lowe's Companies, Inc. (LOW) trades at 18.0× earnings (P/E), below the median of the 212 consumer cyclicals companies over $2bn in Kaplio's universe. At the decade median (22.7×) $269 (+26 %); at its sector median (18.4×) $217 (+2 %).
Kaplio overview: Lowe's Companies, Inc.
Market cap $120B · 52 weeks $180 – $287 (25 % below the high) · P/E 18.0× · 2027 est. P/E 17.4× · Dividend 2.3 % · ≥ 40 years rising · Next earnings November 18, 2026 · expected EPS $2.87 · Closing price, Nov 3 · accounts published Aug 19.
- Valuation: TTM P/E 18.0× (cheap).
- Business: 5-year ROIC 28.6 % (excellent).
- Balance sheet: Net debt/EBITDA 3.5× (fragile).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (22.7×) $269 (+26 %); at its sector median (18.4×) $217 (+2 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer cyclicals: 4 of 8 pass
- Inventory turnover 3.3×, fails.
- Net debt / EBITDA 3.5×, fails.
- Current Ratio 1.10, fails.
- EV/Sales vs history 2.2×, fails.
- 5y avg operating margin 12.6 %, passes.
- 5y avg ROIC 28.6 %, passes.
- Altman Z-Score 3.4, passes.
- P/E read in reverse (cyclicals) 18.0×, passes.
Against its peers (reference peers) — Lowe's Companies, Inc.: P/E 18.0×; EV/EBITDA 12.6×; ROIC 20.6 %; $120B. The Home Depot, Inc. (P/E 23.4×; EV/EBITDA 15.3×; ROIC 18.8 %; $333B), Floor & Decor Holdings, Inc. (P/E 21.6×; EV/EBITDA 11.8×; ROIC 4.9 %; $5.0B), The Sherwin-Williams Company (P/E 31.3×; EV/EBITDA 21.5×; ROIC 14.4 %; $82.4B).
Expensive or cheap against its last ten years?
P/E at each close: today 18.0× · median 22.7× · minimum 14.2× · maximum 44.0× · cheap below 19.7× · expensive above 28.8×. It has been cheaper than today only 19% of the time over its last ten years.
Dividend
solid · Yield (last 12 months) 2.3 % · $4.75 per share in 2025 · Years raising it ≥ 40 · 5-year growth +16 % a year · Free cash flow coverage 2.8× (last three fiscal years) · With $1,000 invested today you'd collect $23.30 a year ($1.94 a month).
Kaplio's reading: Lowe's Companies, Inc.
Updated on October 25, 2026 · accounts published on August 19, 2026
A highly profitable business with steady margins and a heavy debt load
Lowe's Companies trades at a P/E of 18.0 over the last 12 months, 21 % below its ten-year median of 22.7.
- Is Lowe's Companies expensive or cheap? At a P/E of 18.0 over the last 12 months, Lowe's Companies has traded lower only 19 % of the past decade.
- How is the business doing? Operating margin of 11.4 % over the last 12 months sits above the 10.7 % average of fiscal 2014-2025.
- How strong is the balance sheet in a recession? Net debt reached 4.1× EBITDA in fiscal 2025, above the 3.0× the sector treats as healthy.
- What to expect from the next earnings? Analysts expect EPS of $2.87 for the quarter reported on November 18, 2026, after 8 straight beats.
Is Lowe's Companies expensive or cheap?
Over the last 12 months Lowe's Companies trades at a P/E of 18.0, 21 % below its ten-year median of 22.7 and 2 % below the sector median of 18.4. The decade low was 14.2. EV/sales tells a less flattering story: 2.2× in fiscal 2025 against a ten-year average of 1.7×. In cyclical sectors Peter Lynch warned that stocks look cheap when they are expensive, so a modest P/E deserves a second look at earnings. A free cash flow yield of 7.3 % over the last 12 months offers some support. The stock is down 9 % in a year.
How is the business doing?
Revenue grew 3 % over the last 12 months while EPS slipped 3 %, so growth is slow and not reaching the bottom line. Profitability is the strong point: ROIC of 20.6 % is 11.3 points above the sector median of 9.3 %, and it has stayed above 10 % in each of the last ten fiscal years. The five-year average ROIC of 28.6 % clears the sector's 12 % bar easily, and the 12.6 % average operating margin beats the 8 % healthy mark. One weak spot: inventory turned 3.3× in fiscal 2025, short of the 4× a year the sector treats as healthy.
How strong is the balance sheet in a recession?
In a cyclical sector demand can drop fast in a downturn, which is why debt and liquidity weigh more than a single year's earnings. Net debt was $80.24 per share in fiscal 2025, equal to 38 % of the current price, and the current ratio of 1.10 over the last 12 months falls short of the 1.5 the sector considers healthy. On the other side, the Altman Z of 3.4 sits in the safe zone above 2.99, and the Piotroski score is 6 of 9. The dividend, yielding 2.3 %, has risen for 11 straight fiscal years with a 40 % payout in fiscal 2025.
What to expect from the next earnings?
Lowe's Companies has beaten EPS estimates in each of the last 8 quarters. On August 19, 2026 it reported EPS of $4.40 against $4.22 expected, a 4.3 % beat. For the quarter due on November 18, 2026, the consensus sits at $2.87. Estimates look stable: the 2027 EPS consensus barely moved in the last 30 days, from $12.28 to $12.27 across 20 analysts, and the 2027 revenue consensus also barely changed. Of the 51 analysts covering the company, 31 rate it a buy, 19 a hold and 1 a sell. The streak of beats sets a high bar, so a miss would stand out.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Profitability
| Return on Equity | -71.79% |
| Return on Invested Capital | 20.62% |
| Return on Assets | 11.89% |
| Gross Margin | 33.08% |
| Operating Margin | 11.38% |
| Net Margin | 7.34% |
Financial Health
| Debt / Equity | -5.65 |
| Current Ratio | 1.10 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 3.36 |
Compare it with
Price Performance
| 1 month | +18.87% |
| 3 months | -2.30% |
| Year-to-date | -11.52% |
| 1 year | -10.25% |
| 3 years | +9.46% |
| 5 years | -9.41% |
| 10 years | +222.08% |
Dividend History
Paid in the last 12 months: $4.90 per share in 4 payments.
| Date | Amount |
|---|---|
| October 21, 2026 | $1.25 |
| July 22, 2026 | $1.25 |
| April 22, 2026 | $1.20 |
| January 21, 2026 | $1.20 |
| October 22, 2025 | $1.20 |
| July 23, 2025 | $1.20 |
| April 23, 2025 | $1.15 |
| January 22, 2025 | $1.15 |
| October 23, 2024 | $1.15 |
| July 24, 2024 | $1.15 |
Amounts adjusted for stock splits.
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Explore sector: Consumer Cyclical · Home Improvement
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